DOT Awards $2.6M for Ship Support Services to Keystone Shipping Services, Inc

Contract Overview

Contract Amount: $262,500 ($262.5K)

Contractor: Keystone Shipping Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-01-01

End Date: 2026-11-30

Contract Duration: 333 days

Daily Burn Rate: $788/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Transportation

Official Description: CAPE DUCATO FY26 SHIP SUPPORT KEY-DCT26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $262,500 to KEYSTONE SHIPPING SERVICES, INC. for work described as: CAPE DUCATO FY26 SHIP SUPPORT KEY-DCT26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES. Key points: 1. The contract is for ship support services, a critical component of maritime operations. 2. Keystone Shipping Services, Inc. is the awardee, suggesting established capabilities in the sector. 3. The contract value of $2.6M is moderate, requiring scrutiny for cost-effectiveness. 4. The sector is Deep Sea Freight Transportation, vital for national and global commerce.

Value Assessment

Rating: fair

The contract is a Cost No Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar ship support contracts is needed to assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the award type is a Delivery Order, which may have specific terms impacting final pricing.

Taxpayer Impact: Taxpayer funds are being used for essential maritime services. Ensuring cost efficiency is paramount to maximizing the value of this investment.

Public Impact

Ensures continued operation of vessels crucial for trade and national security. Supports jobs within the maritime industry and related supply chains. Impacts the efficiency and reliability of freight transportation services.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Cost No Fee contract type requires diligent oversight to prevent cost escalation.
Delivery Order award mechanism needs careful monitoring for adherence to scope and budget.
Limited duration of the contract may necessitate future procurements, impacting long-term planning.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Supports a critical sector for economic activity.
Clear definition of services required for ship support.

Sector Analysis

The Deep Sea Freight Transportation sector is essential for global trade and national supply chains. Spending benchmarks for ship support services vary widely based on vessel type and service scope, but this $2.6M award appears within a typical range for such operations.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be critical for the Cost No Fee contract to ensure services are delivered efficiently and within budget. The Department of Transportation's Maritime Administration is responsible for monitoring performance and financial expenditures.

Related Government Programs

Deep Sea Freight Transportation
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Cost No Fee contract type.
Potential for cost overruns.
Reliance on contractor performance for critical services.
Need for ongoing oversight and accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $262,500 to KEYSTONE SHIPPING SERVICES, INC.. CAPE DUCATO FY26 SHIP SUPPORT KEY-DCT26-1008A ISSUED TO REIMBURSE SHIP MANAGER FOR SHIP SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is KEYSTONE SHIPPING SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $262,500.

What is the period of performance?

Start: 2026-01-01. End: 2026-11-30.

What is the expected value derived from these ship support services, considering the Cost No Fee structure?

The value is derived from ensuring the operational readiness and safety of vessels, which is critical for uninterrupted freight transportation. However, the Cost No Fee structure means value is realized through efficient service delivery and adherence to the contract's objectives, rather than a fixed price. Close monitoring by the agency is essential to ensure costs remain reasonable and services meet the required standards.

What are the primary risks associated with this contract, and how can they be mitigated?

The primary risk is cost escalation due to the Cost No Fee structure, potentially leading to expenditures exceeding initial estimates. Mitigation involves rigorous oversight, detailed performance metrics, and regular financial reviews by the Maritime Administration. Another risk is the potential for service disruptions if the contractor fails to meet performance standards, which can be mitigated through clear performance clauses and contingency planning.

How effective is the full and open competition process in ensuring optimal pricing for these specialized ship support services?

Full and open competition is generally effective in driving competitive pricing by allowing multiple qualified vendors to bid. For specialized services like ship support, it helps ensure that the government receives proposals from capable providers. However, the effectiveness is contingent on the clarity of the solicitation and the agency's ability to evaluate proposals comprehensively, ensuring the lowest price technically acceptable or best value is achieved.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1 BELMONT AVE STE 910, BALA CYNWYD, PA, 19004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $262,500

Exercised Options: $262,500

Current Obligation: $262,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JF725D000031

IDV Type: IDC

Timeline